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Are you not aware that Premiere Elements INCLUDES built-in DVD authoring?
PrEl includes a very basic DVD authoring environment. I want something like DVD-Lab if I can get it. I need to be able to do intros to menus, and things like you see on a pro videos.
I know you want something full-featured and free -- but they're kind of mutually exclusive.
For all around value, though, you can't beat Sony's DVD Architect Studio. It retails for $49.95, but you can download it from the site for $39.95 -- and it's worth every penny!
And, yes, it will play video before the main menu and transitional video between menus.
Or go to Amazon... just looked, and they have the physical media version on sale, and with free shipping